Commercial Inland Marine Forms & Floters

Question 1

A dry cleaning business is liable for damage to a customer’s clothes after a dryer fire.

Answer 1

Bailees Customers Form

Question 2

A technician is installing a heating system into someone’s home when the system malfunctions.

Answer 2

Installation Floater

Question 3

A truck drives into a building that is still being constructed and damages building materials and supplies.

Answer 3

Builders Risk Coverage

Question 4

A landscaping company wants to protect its power drills and bulldozers.

Answer 4

Contractors Equipment Floater

Question 5

After a fire at the business, the harvesters, tractors, and bulldozers kept as stock are badly damaged.

Answer 5

Equipment Dealers Floaters

Question 6

A trucking corporation loses its business records after a fire, making it impossible for the corporation to collect money it is owed from customers.

Answer 6

Accounts Receivable Coverage Form

Question 7

A business has its deeds, maps, and mortgages destroyed in a fire and needs to replace them.

Answer 7

Valuable Papers and Records Floater

Question 8

which serves as both a contract and a receipt for goods accepted into the carrier’s care, verifying receipt of the cargo by the carrier and guaranteeing safe delivery. receipt for the goods being transported, as issued by carriers. receipt for the goods being transported, as issued by carriers.

Answer 8

Bill of Landing

Question 9

A contract and receipt for cargo accepted into the carrier’s care, making the carrier liable for the full value of cargo

Answer 9

straight bill of landing

Question 10

A contract and receipt for cargo accepted into the carrier’s care, making the carrier liable for a stated value of cargo

Answer 10

released bill of landing

Question 11

Cargo forms protect carriers against their legal liability for cargo. Multiple cargo coverage forms are available, depending on if the carrier has care of non-owned property or if the carrier owns/ships the property.

Answer 11

Motor Truck Cargo Forms

Question 12

Property coverage for cargo, when the insured carrier owns the truck itself, but the cargo belongs to another entity

Answer 12

Motor Truck Cargo Trucker Form

Question 13

Property coverage for cargo, when the insured carrier owns both the truck and the cargo inside of it

Answer 13

Motor Truck Cargo Owners Form (Shippers Form)

Question 14

Companies that transport their own goods on their own trucks and also transport the goods of others need bailee coverage and coverage as property owners. A combination form is available to combine the coverages provided by the Truckers Form and Owners Form.

Answer 14

Motor Truck Cargo Combination Form

Question 15

carriers accept most or all of the liability for lost or damaged property in transit, there may still be losses to cargo that fall outside of that liability. For this reason, the owners of the cargo also need insurance coverage for their property that has been placed with a hired carrier.

Answer 15

Transit Coverage Form

Question 16

Property coverage for cargo, when the insured cargo owner ships or receives cargo multiple times throughout a given year

Answer 16

Annual Transit Coverage Form

Question 17

Property coverage for cargo, when the insured cargo owner has only one shipment for which it needs coverage

Answer 17

Trip Transit Coverage Form

Question 18

is the oldest form of property insurance.

It insures the transportation of goods and merchandise (imports and exports) by vessels crossing domestic and foreign waters, as well as any inland or aviation transit connected with the shipment—this is known as warehouse to warehouse insurance

Answer 18

Ocean Marine Insurance

Question 19

by vessels crossing domestic and foreign waters, as well as any inland or aviation transit connected with the shipment

Answer 19

warehouse to warehouse insurance

Question 20

are written into the policy contract, such as the exclusion of coverage for war, strike, riot, and civil commotion.

Answer 20

Express Warranties

Question 21

are not always written into the contract, but they are generally understood by all parties.
are binding, and any breach of them will void the policy.

Answer 21

Implied Warranties

Question 22

Implied warranties include:

Answer 22

Legality, Seaworthiness, No Deviation in Voyage, Condition of Cargo

Question 23

Perils of the Sea

Answer 23

Heavy weather
Collison
Stranding
Barratry
Piracy
Jettison

Question 24

sometimes called the Additional Perils clause, that covers damage caused by latent defects in the hull (the ship itself) or machinery of the vessel, errors in navigation, or management errors by the captain or crew. This would include damage caused by the bursting of boilers or the breaking of propeller shafts.

Answer 24

Inchmaree Clause

Question 25

What are the three main coverages provided under Ocean Marine Property Coverages?

Answer 25

provides three main property coverages for the hull, cargo, and freight.

Question 26

-covers physical damage to the ship, boat, or barge itself, including fittings and machinery of the vessel.
-Coverage may be written on an open or named perils basis, though named perils is more common, insuring against the perils on the sea and the perils of the sea.

Answer 26

Hull Insurance

Question 27

which adds legal liability coverage for physical damage to another vessel and its cargo resulting from collision caused by negligent operation of the insured vessel.

Answer 27

Running Down Clause

Question 28

Coverage is provided for physical damage to the vessel, including collision coverage and coverage for the bursting of boiler

Answer 28

Hull Insurance

Question 29

Coverage is provided for physical damage to merchandise being transported

Answer 29

Cargo Insurance

Question 30

the buyer takes interest in the property as soon as the trip begins

Answer 30

FOB (Free on Board) Point of Shipment

Question 31

the seller retains interest in the property until after the trip is completed.

Answer 31

FOB Point of Destination

Question 32

In Ocean Marine insurance, liability coverage is called what?

Answer 32

Protection and Indemnity insurance

Question 33

Coverage is provided for indirect losses, such as import duties the shipper cannot recover when a trip is cancelled

Answer 33

Freight Insurance

Question 34

Coverage is provided for the shipowner’s liability, such as injuries to passengers, work-related injuries, and wreckage clean-up costs

Answer 34

Protection and Indemnity insurance